Rental Property Cash Flow Calculator
Analyze your rental property's monthly cash flow, net operating income, cap rate, and cash-on-cash return before you invest.
💰 Income
📋 Monthly Expenses
🏠 Property Info (for return metrics)
Understanding Rental Property Returns in Canada
Cash flow is the most immediate metric: what's left after all expenses including the mortgage? Negative cash flow means you're subsidizing the property each month — only justified if appreciation or other factors compensate.
Cap rate lets you compare properties regardless of financing. It tells you what the property returns based purely on its income and price — ignoring whether you're using a mortgage. A cap rate above the mortgage rate generally indicates positive leverage.
The 1% rule (popular in the US) rarely works in Canadian urban markets — a $700,000 Toronto condo earning 1% monthly rent would need $7,000/month, when typical rents are $2,500–$3,200. In Canada, appreciation has historically subsidized negative cash flow, but this carries risk. Always run the numbers on cash flow before counting on appreciation.